Global M&A enjoys second-half bounce-back: Refinitiv

M&A activity hit US$1.9 trillion in the second half — and there’s still a month to go

Business partnership meeting. Picture businessmans handshake. Successful businessmen handshaking after good deal. Horizontal, blurred (Business partnership meeting. Picture businessmans handshake. Successful businessmen handshaking after good deal. Ho

After a tough start to the year due to the Covid-19 outbreak, global merger and acquisition activity has already hit record levels for the second half, Refinitiv reports.

According to the firm’s latest data on the global M&A market, the second half of 2020 reached a record $1.9 trillion (all figures in U.S. dollars) in deal activity with a month left in the year.

Despite the recent rebound, global M&A so far this year sat at $3.1 trillion at the end of November, which is down by 10% at the same point a year ago.

There was $345.5 billion worth of deals announced in November, Refinitiv reported. While that’s down by 20% from the previous month, it represented a 13% year-over-year increase and the strongest November since 2015, the report said.

Cross-border M&A was particularly strong last month, up 82% from November 2019 to US$167.2 billion.

Deal activity declined in the U.S. and the Asia Pacific region last month, but Europe had its best November since 1999.

The tech sector led the way in M&A in November, Refinitiv said.

“Tech M&A is at the highest level year-to-date level of all-time, with both value and number of deals exceeding those recorded in dot-com boom,” the report said.

The report also said that private equity–backed M&A had its best November since 2006.